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2004 Supreme(UK) 34
2004 (2) UC 870
STATE COMMISSION CONSUMER PROTECTION UTTARANCHAL, DEHRADUN
HON'BLE K. D. SHAHI, PRESIDENT SURENDRA KUMAR AND MS. LUXMI SINGH, MEMBER
M/s National Electricals – Appellant
Versus
National Insurance Co. Ltd. – Respondent
Complaint No. 37/2002
Decided on : 15.4.2004 .
Sh. Ram Kishore Arya for Appellant Sh. Sudhanshu Dwivedi for Respondent
The main legal point established in the judgment is the reliance on physical verification of stock, assessment by fire brigade officials, and the assessment of loss by the surveyor to determine the justified and reasonable compensation for the complainant.
Headnote:
Insurance - Recovery of Loss - Shopkeeper's Insurance Policy, Fire Cover Note - Section 11 - Summary of Acts and Sections: The court discussed the Shopkeeper's Insurance Policy, Fire Cover Note, and Section 11, highlighting the coverage for loss by burglary and housebreaking, and the assessment of loss by the surveyor. The court emphasized the physical verification of stock by bank officials and the assessment by fire brigade officials, influencing the decision to award compensation to the complainant.
Fact of the Case:
The complainant filed a complaint for recovery of loss of stock and furniture due to fire, alleging non-payment of claim by the insurance company.
Finding of the Court:
The court found the insurance and fire to be admitted, and awarded compensation to the complainant based on the assessment of loss by surveyor, physical verification of stock, and assessment by fire brigade officials.
Issues: The main issue was the amount of compensation to be awarded to the complainant for the loss of stock and furniture due to fire.
Ratio Decidendi: The court relied on the physical verification of stock by bank officials, assessment by fire brigade officials, and the assessment of loss by the surveyor to determine the justified and reasonable compensation for the complainant.
Final Decision: The complaint was allowed, and the complainant was awarded a sum of Rs.4,38,994/- along with interest @12% payable from the date of filing of the complaint, and a cost of Rs.2,000/- from the opposite party.
Delivered by Sri Surendra Kumar, Senior Member: This complaint has been filed by M/s National Electricals, Near Gandhi Park, Thana Jaspur, Dist. Udham Singh Nagar through its Proprietor, Sh. Vijay Singh for recovery of loss of stock and furniture amounting to Rs; 7,15,529/(Rupees, Seven Lacs Fifteen Thousand Five Hundred Twenty Nine) interest given to bank amounting to Rs.1,00,000/- (Rupees One Lac), Rs. 50,000/- (Rupees fifty Thousand) for business loss, Rs. 1,00,000/- ( Rupees One Lac) for mental pain and agony & Rs. 5,000/- (Rupees Five Thousand) as cost of litigation. The complaint has been filed for a total sum which came after amendment to Rs. 7,68,676/- (Rupees Seven Lacs Sixty Eight Thousand Six Hundred Seventy Six).
2. The brief facts of the case are that on 11.06.2001, the complainant insured his shop under Shopkeeper's Insurance Policy for a sum of Rs. 10,00,000/- (Rupees Ten Lacs) which included Rs. 9,40,000/- (Rupees Nine Lacs Forty Thousand) for stock of the shop and Rs. 60,000/- (Rupees Sixty Thousand) for furniture against the fire policy No. 48/34/00128/01. valid from 11.06.2001 to 10.06.2002 and on 14.06.2001, he was issued a policy of Rs. 2,00,000/- (Rupees Two Lacs) for stock of the godown under fire cover note No. 167781, valid from 14.06.2001 to 13.06.2002. On 08.10.2001 due to high voltage/short circuit, the fire broke out in the shop as well as godown, due to which Eight Lacs Forty Five Thousand) and furniture of Rs. 62,000/- (Rupees Sixty Two Thousand) was damaged. The accounts kept in the shop. Stock register bills of sale & purchase, receipts and other papers were also damaged. Information was given to the Electricity Department. Fire Brigade, Police Station and also to the opposite party, National Insurance Co. He also lodged the ELR. in the police station.
3. It is alleged that on getting the information, the insurance company appointed Sh Manoj Joshi, surveyor and the complainant fully co-operated him and supplied all the relevant papers, which were necessary for the assessment of the loss to him. The surveyor after assessment submitted his report to the insurance company to finalize the claim for Rs. 2,12,000/- (Rupees Two Lacs Twelve Thousand). However, the fire officer in his report reported the loss to the tune of Rs. 7,00,000/- (Rupees Seven Lacs).
4. The complainant sent two letters to the insurance company requesting for the payment of the claim and on 14.03.2002 & 15.04.2002, supplied all the information and papers but still the insurance company did not allow the claim. Then on 30.05.2002, 18.06.2002 & 08.07.2002, the complainant sent three reminders for the payment of the claim but the insurance company did not pay anything .He alleged that according to the rules, the claim should have been settled within 3 months. He further alleged that on 25.06.2002 and 20.08.2002, the insurance company gave wrong reply to his reminders. He again alleged that the insurance company demanded those papers, which were already submitted to them on 14.03.2002, &. 15.04.2002 and those were not necessary for the settlement of the claim. He alleged that all the records of his firm were destroyed due to fire and be submitted the final stock statement of September 2001 from Allahabad Bank, from where he has got a cash credit limit of Rs. 6,00,000/- (Rupees Six Lacs) and also a certificate dated 01.10.2002 regarding the quantity and value of stock. After repeated requests, when his claim was not paid, he filed the complaint.
5. The opposite party, insurance company filed written statement and alleged that the complaint is not maintainable. It admitted the insurance, It further admitted the outbreak of fire on 08.10.2001. But denied the other allegations of the complaint. It again alleged that Sh. Manoj Joshi was appointed surveyor, and the surveyor asked the complainant to submit certain papers but the complainant did not provided the papers and did not extend co-operation therefore the surveyor recommended
